Regional Doing Business – 2020: BRDO identified the best region for doing business in Ukraine

According to the study, Zhytomyr region is the best one for doing business in 2020. Chernihiv region (2nd position), Kyiv city (3rd position), and Rivne region (4th position) also are in the TOP-4 of the Regional Doing Business – 2020 rating. Vinnytsia and Ivano-Frankivsk regions gained the same number of points and are both ranked fifth in the rating.

Kyiv region (assessed separately from the capital), Luhansk region (Severodonetsk was assessed), Kharkiv region, Kherson region, Khmelnytsky region, and Mykolayiv region ranked last in the rating 2020.

“This is the third study of the business climate in Ukrainian regions conducted by BRDO. The rating is based on a survey according to the adapted World Bank’s Doing Business methodology. Progress in the decentralization reform provides local self-government bodies with new powers. The way in which powers are exercised often has a defining impact on public services that local entrepreneurs will receive. The implementation of the adopted reform laws often depends on local self-government bodies. Regional Doing Business is a litmus test that indicates to local self-government bodies what aspects require attention to improve the business environment and attract investors,” Oleksii Dorogan, CEO of the Better Regulation Delivery Office (BRDO), said.

The Regional Doing Business – 2020 rating is determined by the amount of points gained by a regional center in six components: starting a business, paying local taxes, land plot registration, connection to electricity grids, obtaining construction permits, and electronic services. The assessment was conducted using the adapted World Bank’s methodology and based on a survey of Ukrainian entrepreneurs (1,754 respondents from 25 regions and the city of Kyiv).

“Zhytomyr region won in this year’s rating having gained high scores by such components as “starting a business”, “land plot registration” and “connection to electricity networks”. However, even the rating’s leader has significant gaps that should be eliminated: Zhytomyr received an extremely low result in terms of “electronic services” in comparison with some regional centers, which are at the bottom of the ranking. Therefore, the rating is about an intermediate result that should be consolidated and further improved,” Vadym Zaharii, BRDO project manager, emphasized.

Zaporizhzhia (+10 positions), Kropyvnytskyi (-5 positions), Chernivtsi (+6 positions), Kherson (-5 positions), Khmelnytskyi (-8 positions) and Mykolayiv (- 11 positions) are among the regional centers with significant rating changes.

“Regional Doing Business is aimed at achieving two goals. First of all, it is a guide for potential investors showing a burdensomeness level of the most common administrative procedures in a particular city. Second, the rating is useful for local and regional authorities seeking to become leaders next year. This is honest feedback from businesses that should encourage local authorities to change,” Valerii Prokopets, Deputy Director of the Entrepreneurship Development and Regulatory Policy Department of the Ministry of Economic Development, Trade and Agriculture, said.

The Regional Doing Business rating that assesses the ease of doing business in all regional centers of Ukraine has been developed by BRDO experts since 2017.

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The Better Regulation Delivery Office is an independent expert and analytical center funded by international donors, primarily the European Union as part of the FORBIZ project within the EU4Business Initiative. We focus on improving the business environment and investment attractiveness of Ukraine, promoting the development of entrepreneurship, and establishing a public dialogue between the government and businesses.